Gold Demand Remains Resilient Despite Cooling Price Momentum

The World Gold Council's latest report reveals that total gold demand was flat year-on-year at 1,269t in Q2 2026. This is a significant drop from the record highs seen earlier this year. The decrease in demand is attributed to the lower gold price, which has tempered the strong momentum seen earlier in the year.

Investment in gold ETFs, bars, and coins dropped to 262t in Q2, primarily driven by outflows of 45t from gold-backed ETFs. However, first-half ETF demand remained modestly positive at 18t. Bar and coin investment was relatively stable, down just 3% year-on-year in Q2.

The OTC market saw an increase in demand, driven by Asian investment, with a total of 327t in Q2 and 571t in H1. Central banks added a net 289t to their reserves in Q2, up 62% year-on-year. The World Gold Council's Central Bank Gold Reserves Survey found that 45% of respondents intend to increase their gold reserves over the next 12 months.